Overview

• Client Associates analysed 25 VC/PE-backed firms listed from May 2020 to June 2025 and found that 68% delivered an average 24.15% listing gain, yet only 36% of IPO investors and 32% of post-IPO investors outperformed the BSE 500.
• Pre-IPO investors achieved the strongest outcomes with 43% generating positive alpha, highlighting the critical role of entry-point timing in long-term returns.
• Companies with clear paths to profitability and scalable revenue—such as Zomato, Nazara and Ixigo—consistently outperformed, while cash-burning businesses like Paytm, Ola Electric and Mobikwik saw steep post-listing value erosion.
• The report attributes much of the shortfall to pandemic-era liquidity and heightened retail speculation that drove narrative-led investing over fundamental analysis.
• Investors are advised to focus on business-model viability and portfolio diversification rather than equating listing-day performance with durable value creation.